Blueprint (BPMC) Q2 Earnings and Revenues Beat Estimates
Blueprint Medicines Corporation BPMC reported a loss of $2.19 per share for the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $2.58. The company had incurred a loss of $2.68 per share in the year-ago quarter.
Quarterly revenues of $57.6 million also surpassed the Zacks Consensus Estimate of $45 million. The company reported total revenues of $36.5 million in the year-ago quarter.
However, shares of Blueprint Medicines were down about 10% during pre-market hours on Wednesday, despite positive results. Investors did not cheer these better-than-expected results probably because the company did not issue any product sales guidance for Ayvakit for 2023.
The stock has gained 46.4% year to date against the industry’s decline of 12.3%.
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Quarter in Detail
Blueprint Medicines’ total revenues comprised of net product revenues from Ayvakit (avapritinib) sales and collaboration revenues. Net product revenues from Ayvakit sales were $39.9 million, which beat the Zacks Consensus estimate of $35.5 million for the total sales of the drug in the reported quarter. Sales of the drug grew 2% on a sequential basis and 40% on a year-over-year basis. Our estimate for total revenues generated from Ayvakit sales was pegged at $32.7 million.
Collaboration revenues were $17.7 million, beating the Zacks Consensus Estimate of $7.92 million, as well as our estimate of $9 million. Blueprint recognizes collaboration revenues from the agreements with CStone Pharmaceutical and Roche RHHBY.
In June 2018, the company inked a collaboration contract with CStone Pharmaceuticals to develop and commercialize its three clinical-stage candidates in Mainland China, Hong Kong, Macau and Taiwan, either as monotherapies or combo regimes. Blueprint Medicines is eligible to receive future milestone fees.
In July 2021, BPMC transferred the responsibilities of booking the U.S. product sales of Gavreto to Roche. The company only records the share of profit and loss for Gavreto in financial results and does not record any net product revenues from Gavreto sales. As a result, Blueprint Medicines’ current product revenues solely comprise sales from Ayvakit. However, in February 2023, the company announced initiating the process of regaining development and commercialization rights for Gavreto from Roche.
The termination of the collaboration agreement will become effective in February 2024, at which time Blueprint will regain commercialization and development rights to Gavreto from Roche worldwide excluding the CStone Territory.
Research and development (R&D) expenses were $110.1 million, down 14.3% from the year-ago figure. The primary reason for the decrease in R&D expenses was continued operational efficiency gains across Blueprint’s portfolio along with favorable timing of manufacturing of clinical trial materials
Selling, general and administrative expenses were $71.9 million, up 22.5% year over year. The uptick in such expenses is due to higher costs related to the commercialization of Ayvakit in indolent systemic mastocytosis (ISM), as well as increased compensation-related costs driven by improved headcount. In Europe, the drug is marketed under the brand name, Ayvakyt, to treat advanced SM.
Blueprint Medicines had cash, cash equivalents and investments worth $836.6 million as of Jun 30, 2023, compared with $961.3 million as of Mar 31, 2023.
Pipeline Updates
During the reported quarter, the FDA expanded Ayvakit’s label to include the treatment of ISM in adults. The drug is now approved in the United States for three indications — PDGFRA Exon 18 mutant gastrointestinal stromal tumors, advanced SM and ISM.
Blueprint also nominated BLU-808, an oral KIT inhibitor as a development candidate for the treatment of mast cell disorders, including chronic urticaria.
Blueprint Medicines Corporation Price, Consensus and EPS Surprise
Blueprint Medicines Corporation price-consensus-eps-surprise-chart | Blueprint Medicines Corporation Quote
Zacks Rank and Stocks to Consider
Blueprint currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the overall medical sector are J&J JNJ and ADC Therapeutics ADCT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for J&J’s 2023 earnings per share has increased from $10.66 to $10.73. During the same period, the estimate for JNJ’s 2024 earnings per share has increased from $11.01 to $11.28. Year to date, shares of JNJ have lost 4.4%.
JNJ beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 5.58%.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics’ 2023 loss per share has widened from $2.60 to $2.61. During the same period, the estimate for ADC Therapeutics’ 2024 loss per share narrowed from $2.75 to $2.55. Year to date, shares of ADCT have lost 60.7%.
ADCT beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 10.70%.
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